Did Trump Get Duped By Japan?

The touted trade agreement between the US and Japan is swiftly unraveling amid growing disputes over its terms and conditions, raising serious doubts about President Donald Trump’s claimed victory. Just days after Trump proudly announced a “historic” $550 billion investment commitment from Japan, key aspects of the supposed deal have been publicly contradicted by Japanese officials.

Initially presented by Commerce Secretary Howard Lutnick as a breakthrough, the agreement would reportedly see Japan financing substantial American investments, including critical sectors like semiconductors, shipbuilding, and minerals. Lutnick claimed that Japan would effectively act as a banker, financing these projects, with profits divided 90% to American taxpayers and only 10% to Japanese investors. 

Trump described the $550 billion as a “signing bonus,” telling reporters, “What Japan did is they brought down their tariffs. They gave us $550 billion upfront, 100%.”

However, Japanese officials quickly refuted these assertions, clarifying that only around 1% of the pledged $550 billion represents genuine investment. The remaining 99% consists of loans at market-rate interest, contradicting Trump’s claim of a massive upfront payment.

Moreover, Tokyo explicitly denied any agreement guaranteeing the US a disproportionate share of profits without equally proportional risk and investment contributions. A Japanese Cabinet Office statement underscored that profit-sharing “would be based on the degree of contribution and risk taken by each party,” directly challenging Lutnick and Trump’s representation of the deal.

Critics also argue that Trump’s claim of a “signing bonus” amounting to 13% of Japan’s GDP lacks credibility. Sen. Chris Murphy noted the absurdity, observing that the supposed massive investment “made no sense,” and Japan quickly clarified there is no formal 90/10 profit-split arrangement.

The confusion and disagreements stem from a rushed 70-minute negotiation between Trump and Japan’s chief negotiator, Ryosei Akazawa, following significant electoral setbacks for Japan’s ruling Liberal Democratic Party. Prime Minister Shigeru Ishiba’s recent loss of parliamentary majority further casts doubt on the deal’s stability and legitimacy, with analysts saying that Trump’s hasty agreement might have been a preemptive move to secure a quick political win.

David Boling, Asian trade director at Eurasia Group, concluded, “Japan has been playing a card game with Trump,” suggesting that despite Trump’s claims of victory, Japan may ultimately hold the better hand due to its cautious approach and clear public denials.


Information for this briefing was found via Financial Times and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Russell Will Lead the Next Market Crash!? | John Feneck

The Global Conflict Has Already Started | Bryan Cunningham

Silver Still At 90:1, What If It Snaps Back To 15:1? | Glenn Jessome – Silver Tiger

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Manufacturing Layoffs Erupt Amid Mounting Tariff Pressures

Recent announcements from automakers and appliance manufacturers point to a hard-hitting consequence of the new...

Friday, April 4, 2025, 07:48:30 AM

How Tariffs Became US’s New Swiss Army Knife

While mainly an economic tool, tariffs are now being used to chase security objectives and...

Saturday, August 16, 2025, 09:24:00 AM

Inside Trump’s Bold Tariff Move Masked As National Emergency

In a move aimed at what the White House calls a “national emergency,” President Donald...

Thursday, April 3, 2025, 10:01:00 AM

Ontario Targets Auto, Steel Sectors with $1B Emergency Loan Program

Ontario announced Wednesday that emergency funding will soon flow to businesses hammered by US trade...

Thursday, August 14, 2025, 12:59:00 PM

Pentagon Targets Domestic Gallium Recovery After China Export Curbs

The Pentagon plans to award contracts to North American companies by year-end to recover gallium,...

Friday, March 7, 2025, 10:39:00 AM